On Earth Date October 8, 2023, the Astroport community made a historic decision to migrate its governance and staking hub from Terra to Neutron. Today marks not only the culmination of this vision but the beginning of a new chapter in Cosmos. For the first time ever, a Cosmos protocol has migrated its governance hub from one Cosmos chain to another.
Astroport has also upgraded its governance tokens (ASTRO and xASTRO) from the legacy CW20 standard to the new and improved TokenFactory standard. This means all tokenholders will need to upgrade their tokens as described below.
Overall, today’s successful migration strategically aligns Astroport with the most advanced standards within the Cosmos ecosystem, and it sets the stage for two of Astroport’s most-anticipated launches: vxASTRO and the tributes marketplace.
Upgrading ASTRO and xASTRO to TokenFactory
Migrating ASTRO and xASTRO to the CW-20 token standard to the more robust and flexible Cosmos TokenFactory standard represents a crucial upgrade for Astroport. The new TokenFactory standard greatly enhances Astroport’s token compatibility across the Cosmos network, facilitating seamless interactions via the Inter-Blockchain Communication (IBC) protocol. Unlike the CW20 standard, which often requires an additional callback message for actions to be completed when tokens are sent across chains, the TokenFactory standard streamlines this process.
This is vital for Astroport as it aims to be a hub in the Cosmos network, interacting with a diverse range of blockchains and ensuring that token transactions are as seamless as possible. For token holders, the upgrade to the TokenFactory standard also means a significantly improved interaction with Astroport’s ecosystem by reducing the complexities associated with cross-chain transactions.
ASTRO Migration
Today’s upgrade means there are now two versions of ASTRO and xASTRO. There is the original ASTRO CW20 token, which is now named ASTRO.cw20, and a new ASTRO token minted on Neutron, which is now the canonical version of ASTRO. Likewise, there is the original xASTRO CW20 token, which is now named xASTRO.cw20, and a new xASTRO token minted on Neutron, which is now the canonical version of xASTRO.
To ensure a smooth transition, all Astroport users holding $ASTRO in the CW-20 format must engage in a straightforward swap process, which cannot be reversed. This can be done on the Astroport swap page for each outpost (excluding Osmosis). Anyone who completes the swap can convert $ASTRO.cw20 tokens to the new TokenFactory standard at a 1:1 ratio.
For those holding $ASTRO on the Osmosis platform, additional actions are required:
- Tokens must first be bridged back to Terra or another supported chain where the swap can be executed.
- Once on the appropriate chain, tokens can be swapped on the Astroport swap page.
Additionally, for those holding $xASTRO, the following steps ensure tokens are properly migrated:
- Initially, users must unstake their legacy $xASTRO.
- After unstaking, they must convert their $ASTRO.cw20 to the new $ASTRO format via the swap page.
- Note that the ASTRO-xASTRO liquidity pool on Terra has low liquidity. Users should NOT swap xASTRO for the new ASTRO or they may lose funds. Instead, they should first unstake xASTRO and then swap $ASTRO.cw20 for the new $ASTRO token.
- Once you have the new $ASTRO token, if you want to restake, you will have to bridge the token to the Neutron outposts. You can do this using the Astroport bridge or any IBC bridge that supports $ASTRO in Cosmos. Once on Neutron, you can restake your $ASTRO for $xASTRO to start earning protocol fees.
ASTRO Liquidity, LPs, and Rewards
As Astroport embarks on its strategic migration to Neutron, significant enhancements are being made to the liquidity pools across all chains where Astroport operates. These enhancements are designed to optimize trading efficiency and reward distribution in line with the latest upgrade.
- Creation of New ASTRO Pools Across Chains: With the transition from the CW-20 to the TokenFactory standard, Astroport will establish new liquidity pools on each chain where it’s deployed. These pools will hold the newly minted $ASTRO token. Liquidity providers are encouraged to withdraw their liquidity from the existing pools, swap their ASTRO.cw20 to the new $ASTRO at dedicated swap points, and then re-enter the liquidity into the newly created ASTRO pools. This step is crucial to ensure that liquidity providers continue to contribute to and benefit from the active trading ecosystems on their respective chains.
- New ASTRO - USDC pool on Neutron: As mentioned, new liquidity pools have been created for each chain to accommodate the updated $ASTRO token. While the specific pairing asset varies across chains, the Neutron pool will undergo a particular adjustment from Axelar USDC (axlUSDC) to Noble USDC (USDC). This change requires Neutron liquidity providers to first use the transmuter pool to convert their axlUSDC into Noble USDC at a 1:1 ratio before re-entering liquidity. This step ensures that the new ASTRO - USDC pool aligns with the updated standards and becomes the primary pool for Astroport on this chain, enhancing its role as a central hub for trading and liquidity.
- ASTRO Emissions: Concurrent with the $ASTRO migration to TokenFactory, emissions will now be distributed with the new $ASTRO token. Distribution schedules for ASTRO have also been moved for pools containing the new ASTRO token.
Post-migration, Astroport is set to introduce vxASTRO and a Curve-style bribes market on Neutron. These developments are not just new features but are strategic enhancements designed to boost user engagement and governance participation through innovative economic incentives. Here’s how:
- vxASTRO: This new feature will enable token holders to leverage their holdings to vote on which pools should receive ASTRO emissions across all of Astroport’s deployments.
- Curve-style Bribes Market: By introducing a bribes market, Astroport will allow users to directly influence liquidity priorities. This market mechanism will not only incentivize participation but also drive strategic liquidity to essential pools, thereby fostering a more vibrant and dynamic ecosystem.
Ready to migrate your $ASTRO.cw20? Begin the voyage now: https://app.astroport.fi/swap
The future awaits!
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DISCLAIMER
Remember, Astroport, Injective, Neutron, Sei, and Terra are experimental technologies. This article does not constitute investment advice and is subject to and limited by the Astroport disclaimers, which you should review before interacting with the protocol.
